Turkish economy enters recession ahead of local elections

The Turkish economy fell into a recession at the end of 2018, the national statistics institute said on Monday, just weeks ahead of local elections. Gross domestic product in the fourth quarter fell by 2.4 per cent, compared with the previous quarter when adjusted for seasonal effects and variance in workdays during the period, TurkStat said. The decrease followed a contraction of 1.6 per cent in the third quarter, putting Turkey in a state of recession, which occurs when GDP declines for two consecutive quarters. Analysts had expected the development. The news of the economic decline comes at an inopportune time for Turkey’s government as the country is holding local elections on March 31. The state of the economy is seen as a key issue for voters.